Senate Bill Seeks To Reform Biodiesel Credit

Law360, New York (August 7, 2009, 2:21 PM EDT) -- Sens. Maria Cantwell, D-Wash., and Chuck Grassley, R-Iowa, have introduced a bill aimed at reforming and extending the tax incentive for U.S. biodiesel production to create a stronger incentive to build the necessary infrastructure for the renewable fuel.

The current tax credit for blending biodiesel with petroleum diesel fuel will expire at the end of 2009. The Biodiesel Tax Incentive Reform and Extension Act of 2009, introduced by the two senators Thursday, seeks to extend it for five years and swap the current incentive from a...